What's with investment companies and wholesale tire distributors?
First it was Investcorp buying American Tire Distributors Inc. for $700 million in a deal that closed March 31. Then equity firm FdG Associates acquired Hercules Tire & Rubber Co. on May 11.
In both cases, the new owners see strong growth opportunities in an industry many consider mature.
The deals will provide fresh capital and new incentives to expand these businesses, and the owners will want to see progress within a short timeframe.
As a result, tire dealers can expect to see lots of activity from these companies over the next few years as the owners try and capitalize on their new investments.
It's not your father's tire business anymore.